National income

National income

National income is the total value a country’s final output of all new goods and services produced in one year. Understanding how national income is created is the starting point for macro economics.
    In accounting terms, only the value of final output is recorded. To avoid the problem of double counting, only the value of the final stage, the retail price, is included, and not the value added in all the intermediate stages - the costs of production, plus profits.  In short, national income is the value of all the final output of goods and services produced in one year.